INTROCUTION & HISTORICAL BACKGROUND

Pakola is a line of fruit flavored soft drinks, originally introduced in Pakistan in

1950 by Haji Ali Muhammad. It is produced by Mehran Bottlers (Pvt) Ltd. It is the

first nationally branded soft drink of Pakistan. Hence its name Pakola meaning

'Cola of Pakistan.'

The original green color Pakola ice cream soda is still popular in Pakistan.

However, other Pakola flavours, like Pakola Lychee, have gained popularity.

Another famous type of Pakola is Pakola Orange, which is an orange soda with an

ice cream taste.

It is also available in most Asian shops in the U.K. The drink itself is a very bright

green color, much like the can, and tastes unlike most North American soft drinks.

It has a distinctive and strong taste.

Pakola have also launched their milk. Pakola brand name is owned by Teli Family

and currently Zeeshan Habib is the owner of Pakola carbonated drinks and Yasin

Teli, is the owner of Pakola flavoured milk. Yasin Teli is also the bottler for Pepsi

Co for Sindh and Balochistan province.

CORPORATE PROFILE

Pakola is one of the most popular brands in Pakistan. The brand was created on 14th August,

1950. As per our slogan, “DIL BOLA …. Pakola”, we believe that Pakola is the heart beat of the

nation and with its amazing taste holds the potential to ride the taste buds of the consumers at

home and abroad. Although the green drink “Pakola Ice Cream Soda” is anonyms with the name

Pakola, but that’s not all, Pakola gives sensation by bottling other fruity flavors namely Pakola

Orange, Pakola Lychee, Pakola Raspberry, Pakola Fresh Lime and Pakola Vino.

Our Quality Food Safety and Environment Standards

Mehran bottler is the 1st bottling plant is South Asia. Which has been certified to integrated

management system based on (ISO 9001: 2000), (ISO 14001: 1996) and (RVA HACCP)

standard. Our quality and food safety system follows the FDA GMP requirements and codex.

Our products are manufactured under strict CGMP and Hygiene controls.

Our Technical Team

Mehran bottlers has well experienced people in technical side. There experiences and on going

trainings make them more confident and prepare to face all challenges.

Painting the Globe Green

Pakola is Pakistan's national drink but its might is spread all over globe. It’s the only Pakistani

soft drink which is available in America, Africa, Australia, Afghanistan, Canada, Middle East,

New Zealand and The United Kingdom.

Production

Mehran bottlers operate one of the most modern can filling plant in Pakistan with a filling

capacity of 200 cans per minute. The plant is fully computerized and conforms to the highest

international quality standards. Apart from the above, Mehran Bottlers also operate a bottle

filling plant with a capacity of 240 bottles per minute. The plant can fill both glass and pet

bottles of various sizes.

Distribution

Pakola is distributed nation wide through our network of vehicles and distributors. The company

maintains a fleet of trucks for operations in the Karachi base market.

Human Resource

The company employees 300 personnel at its Karachi plant. Constant efforts are initiated by the

management to train and upgrade the employees and to provide better training and working

environment.

Products of the Company

Carbonated Soft Drink Mineral Water Flavored Milk BasedBeverage

Pakola Ice Cream-Soda

Pakola Orange Pakola Lychee Pakola Raspberry Pakola Guava* Apple Sidra Bubble Up Double Cola Diet Bubble Up

Vital Pakola Milk Ice-Cream-Soda Pina Colada Mango Rose

Analysis of Vision and Mission Statement of the Company

Vision (Actual) “Pakola has and will fulfill its promise to provide international

quality beverages made with the finest ingredients to its consumers and come up to their

expectations at all costs”.

Mission (Actual) “The company mission is to provide its consumer all over the

globe with premium quality beverages with a vast variety that guarantees consumer satisfaction

an also provide opportunities for growth to its employees and the communities in which they

operate”.

ANALYSIS OF MISSION

Component of mission statement

Description Addressed or not?

Customers Who are the firm’s customers? yesProducts or services What are the firm’s major products? yes

Markets Geographically, where does the firm compete?

no

Technology Is the firm technologically current? noConcern for survival, growth, and profitability

Is the firm committed to growth and financial soundness?

yes

Philosophy What are the basic beliefs, values, aspirations, and ethical priorities of the firm?

no

Self-concept What is the firm’s distinctive competence or major competitive advantage?

no

Concern for public image Is the firm responsive to social, community, and environmental concerns?

yes

Concern for employees Are employees a valuable asset of the firm? yes

VISION STATEMENT (PROPOSED)

It is our vision to be the best and leading provider of food and beverage products in Pakistan, and

among the top ten food and beverage companies in the world, by continually challenging present

conventions and always staying a step ahead of the competition.

MISSION STATEMENT (PROPOSED)

It is Mehran Bottlers’1 mission to be the number one food and Beverage Company in Pakistan

by providing our customers with the highest product quality in terms of taste, experience, and

satisfaction. We will ensure this through an unwavering dedication to the continuous

development of our products and processes ensuring that we remain best in class. We will strive

to hire the most competent and dedicated employees whose work ethic will set the standard in

the industry. We will be paymasters, as we strongly believe that human resource is the only asset

that truly appreciates over time. We will also be a responsible social corporate citizen, and strive

to enhance the quality of life in the markets we serve.

External Factor Evaluation Matrix

Pakola received a score of 1.94 in the external factor evaluation. This means that they are not

currently well equipped to take advantage of opportunities in the external environment, nor

defend against potential threats.

Of the key external factors, the opportunity of health conscious trend in lifestyles got the highest

rating because this has become a huge market which most major players in the industry are

already tapping into with their diet products. Apart from Diet Bubble-up, Pakola is not catering

to this potential gold mine of a market.

Engro’s entry into the food and beverage market with Olper’s milk has presented Pakola with a

competitive challenge. Launched a little after Pakola launched its line of milk products, Olper’s

had the backing of a massive marketing and advertising campaign that clearly communicated

their position and proposition to consumers. Pakola’s weak branding choices regarding its milk

products reflect this ineffectiveness in communicating to end-users. The company stretched its

Pakola brand name to its UHT milk as well as to its flavored milks, when the name stood mainly

for their ice-cream soda cola drink in the minds of consumers. Therefore, by stretching the brand

name to milk, they create a mental conflict in users, between fizzy carbonated colas, and pure

clean milk. This mistake coupled with ineffective marketing has put Pakola in this situation.

Competitive Profile Matrix

Pakola received a score of 1.95 in the competitive profile matrix. This low figure is

representative of Pakolas’ inability to leverage its competitive advantage of unique tasting

flavors successfully. This inability stems from the company’s lack of effective communication of

their offering and its uniqueness. This is one of the major mistakes companies make when

following a differentiation strategy, they assume that consumers will recognize the difference

that they offer. This is exactly the mistake that Pakola has made.

The areas where Pakola has taken a beating are in market share and distribution. From a strategic

viewpoint however, distribution is the area which Pakola should target in the short run if they

hope to achieve any type of success. Advertising programs that are basically demand-building

exercises are useless if the product has little market reach and is not meeting the created demand.

Therefore, before concentrating on marketing activities in the hopes of increasing market share,

Pakola needs to strategically outsource their distribution setup to a distribution company such as

Muller and Phipps, with the expertise in how to effectively increase a company’s reach into the

market. In due time the company should build up its own sales teams so as to make distribution a

core competency of theirs. Yet they should trust an established distribution company in the short-

run to improve its product availability.

Internal Factor Evaluation Matrix

Pakola received a total score of 1.86 in the internal evaluation. This signifies that the company

has a weak internal system and is not able to effectively manage any of their strengths in a

meaningful manner. Also of their weaknesses, it is worthy to note that their weak distribution

setup had the most weightage.

Therefore, from our internal factor analysis we can form two possible strategies. One is the

formation of a structured and competent distribution network through the enabling of sales force

teams.

SWOT Matrix

Of the several strategies detailed above, we will now focus our discussions towards two of the

main strategies that should be undertaken in the near future;

1. Hire Muller and Phipps to handle distribution concerns

2. Introduce diet versions of current products

By allowing an experienced distribution expert like Muller and Phipps to handle its distribution,

Pakola can instead focus its short-term resources towards the structuring of its organizational

setup.

The issues with Payolas’ management setup are the root cause of its lackluster strategic business

performance, and must be addressed before the company can expect extended success and

profits.

The second strategy that they can enforce is the introduction of diet versions of their current

product portfolio. By tapping into this market they would be able to hit two birds with one stone.

They would be targeting those consumers whose lifestyles revolve around healthiness, and also

they would be targeting adults who wish not to drink extremely sweet sugary drinks.

SPACE MATRIX

FINANCIAL STRENGTHS (FS) ENVIRONMENTAL STABILITY (ES)

Return on Asset (ROA) 2 Rate of Inflation -3

Leverage 3 Technological Changes -1

Net Income 2 Price Elasticity of Demand -2

Net Asset 3 Competitive Pressure -4

Return on Equity 1 Barrier to entry into the Market -2

Financial Strengths (FS) 2.2 Environmental Stability (ES) -2.4

COMPETITIVE ADVANTAGE (CA) INDUSTRY STRENGTH (IS)

Market Share -2 Growth Potential 5

Product Quality -1 Financial Stability 4

Customer Loyalty -2 Ease of entry into the market 6

Technological know-how -1 Resources Utilization 4

Control over supplier & Distributors -2 Profit Potential 6

Competitive Advantage (CA) -1.6 Industry Strength (IS) 5

Financial strength = +2.2 Environmental stability = -2.4

Competitive advantage = -1.6 Industry strength = +5.0

Y-axis: 2.2 + (-2.4) = -0.2X axis: 5.0 + (-1.6) = 3.4

SPACE MATRIX FOR PAKOLA

Pakola is positioned towards a competitive approach due to its unique competitive advantage and

the strength of the industry it is operating in.

BCG Matrix

Pakola bubble up

Pakola orange

Blue Ocean Strategy

CONCLUSION

1. Induct a creditable and capable Human Resource Function, capable of

2. Inducting a highly innovative and talented Marketing Department (which

currently does not exist in the organization)

This Marketing Department will:

• Carry out extensive, accurate and decisive market research laying strategic

importance to market intelligence, consumer insight and modern techniques of

marketing based on scientific research, and putting these to strategic use through

effective communication of these decisive elements with the strategic level

management.

• Exert itself to marketing the product to the already brand loyal consumers in

order to consolidate (and in the process also reacquire any of it’s lost market share)

them while also targeting newer potentially loyal markets in it’s attempt to gain

market share, but this targeting of the newer markets will only happen once the

‘Critical Distribution Issue has been resolved’ (which is one of the key reasons

why Pakola continues to remain stagnant or reclining when it comes to market

share)

• Outsource its Distribution function to Muller and Phipps, the best in distribution

in Pakistan, temporarily, to make it’s over-hauling easier to bring about and at the

same time